The positive momentum in the USD/JPY might now extend to the 111.45 level, according to UOB Group FX Strategists.
Observation for 24 hours: “After a few days of uneventful trading, the rapid increase in USD to 111.11 caught everyone off guard. Although the fast surge appears to be exaggerated, the USD has room to strengthen to 111.25. (next resistance is at 111.45). For the time being, a sustained rise above this level appears doubtful. 110.90 is the first level of support, followed by 110.70.”
Within the next 1-3 weeks: “We said on Tuesday (29 June, spot 110.65) that the dollar ‘may consolidate and trade between 110.05 and 111.10 for a length of time.’ ‘Looking ahead, the possibility for USD to break above 111.10 initially appears to be larger,’ we said yesterday (30 June). However, we were not prepared for the rapid push higher, as the USD reached 111.11 during NY hours. The upward trend has improved slightly, but not much. USD is anticipated to trade with an upward tilt towards 111.45 as long as 110.55 (‘strong support’ level) is not exceeded.”/n
